FS Bancorp, Inc. (NASDAQ: FSBW) (the “Company”), the holding
company for 1st Security Bank of Washington (the “Bank”), today
reported 2023 net income of $36.1 million, or
$4.56 per diluted share, compared to $29.6 million, or
$3.70 per diluted share for 2022. Fourth quarter net income
was $9.8 million, or $1.23 per diluted share, compared to
$7.6 million, or $0.97 per diluted share, for the comparable
quarter one year ago.
“Utilizing the Bank's highly diversified balance sheet,
our team achieved our goal of producing strong financial
results in varying rate and economic environments,”
stated Joe Adams, CEO. “We are also pleased that our Board of
Directors increased and approved our forty-fourth consecutive
quarterly cash dividend. The quarterly dividend will be
paid on February 22, 2024, to shareholders of record as of February
8, 2024,” concluded Adams.
“The integration of the seven retail branches acquired from
Columbia State Bank in the first quarter of 2023, provided
a framework for our balanced, focused growth
throughout 2023,” noted Matthew Mullet, CFO.
2023 Fourth Quarter and Year End Highlights
- Net income was $9.8 million for the fourth quarter of
2023, compared to $9.0 million in the previous quarter, and
$7.6 million for the comparable quarter one year ago;
- Our Board of Directors approved a $0.01 increase in the
quarterly dividend to $0.26 per share, or $1.04 annually;
- A closed branch in Centralia, Washington recorded as an other
real estate owned (“OREO”) property in the fourth quarter of
2022 was sold in the fourth quarter of 2023 with a resulting
gain of $148,000;
- As of the fourth quarter of 2023, the Company has been
negotiating to sell a portion of its mortgage servicing
rights (“MSRs”). The MSRs related to mortgages with Fannie
Mae and Freddie Mac serviced loans with an aggregate principal
balance of approximately $1.30 billion of its $2.83
billion total servicing portfolio. In addition, the
Company transferred $8.1 million of residential mortgage
loan servicing rights to held for sale. The sale is projected to
close in the first quarter of 2024;
- Total deposits increased $67.9 million, or 2.8%, to
$2.52 billion at December 31, 2023, compared to $2.45
billion at September 30, 2023, and increased
$394.6 million, or 18.5%, from $2.13 billion at December
31, 2022, with noninterest-bearing deposit totals of
$670.8 million at December 31, 2023, $670.2 million
at September 30, 2023, and $554.2 million at December 31,
2022;
- Loans receivable, net increased $25.9 million, or 1.1%, to
$2.40 billion at December 31, 2023, compared to
$2.38 billion at September 30, 2023, and increased
$210.6 million, or 9.6% from $2.19 billion at December
31, 2022;
- Consumer loans, of which 88.1% are home improvement loans,
increased $6.7 million, or 1.0%, to $646.8 million at
December 31, 2023, compared to $640.1 million in the previous
quarter and increased $77.2 million, or 13.6% from
$569.6 million in the comparable quarter one year ago. During
the three months ended December 31, 2023, originations in the
consumer portfolio included 77.3% of home improvement loans
originated with a Fair Isaac and Company, Incorporated (“FICO”)
score above 720 and 91.5% of home improvement loans with a UCC-2
security filing;
- Segment reporting reflected net income of $10.0 million
for the Commercial and Consumer Banking segment and a net loss of
$254,000 for the Home Lending segment in the fourth quarter of
2023, compared to net income of $8.3 million and net loss
of $684,000 in the fourth quarter of 2022,
respectively;
- The ratio of available unencumbered cash and secured borrowing
capacity at the Federal Home Loan Bank (“FHLB”) and the Federal
Reserve Bank to uninsured deposits was 224% at December 31,
2023, compared to 216% in the prior quarter. The average deposit
size per FDIC-insured account at the Bank was $33,000 at
both December 31, 2023 and September 30, 2023;
- Regulatory capital ratios at the Bank were 13.4% for total
risk-based capital and 10.4% for Tier 1 leverage capital
at December 31, 2023, compared to 13.1% for total
risk-based capital and 10.3% for Tier 1 leverage capital
at September 30, 2023;
- The return on average assets increased nine basis points
to 1.27% for the year ended December 31, 2023 compared to
1.18% for the year ended December 31, 2022; and
- The allowance for credit losses on loans (“ACLL”) to gross
loans receivable increased to 1.30% at December 31, 2023,
compared to 1.27% at September 30, 2023, and 1.26%
at December 31, 2022.
Segment Reporting
The Company reports two segments: Commercial and Consumer
Banking and Home Lending. The Commercial and Consumer Banking
segment provides diversified financial products and services to our
commercial and consumer customers. These products and services
include deposit products; residential, consumer, business and
commercial real estate lending portfolios and cash management
services. This segment is also responsible for the management of
the investment portfolio and other assets of the Bank. The Home
Lending segment originates one-to-four-family residential mortgage
loans primarily for sale in the secondary markets as well as loans
held for investment.
The tables below provide a summary of segment reporting at or
for the three months and years ended December 31, 2023 and
2022 (dollars in thousands):
| |
|
At or For the Three Months Ended December 31, 2023 |
|
| Condensed income
statement: |
|
Commercial and Consumer Banking |
|
|
Home Lending |
|
|
Total |
|
|
Net interest income (1) |
|
$ |
28,405 |
|
|
$ |
2,050 |
|
|
$ |
30,455 |
|
| Provision for credit
losses |
|
|
(939 |
) |
|
|
(463 |
) |
|
|
(1,402 |
) |
| Noninterest income (2) |
|
|
2,602 |
|
|
|
2,854 |
|
|
|
5,456 |
|
| Noninterest expense (3) |
|
|
(17,668 |
) |
|
|
(4,765 |
) |
|
|
(22,433 |
) |
| Income (loss) before
(provision) benefit for income taxes |
|
|
12,400 |
|
|
|
(324 |
) |
|
|
12,076 |
|
| (Provision) benefit for income
taxes |
|
|
(2,374 |
) |
|
|
70 |
|
|
|
(2,304 |
) |
| Net income (loss) |
|
$ |
10,026 |
|
|
$ |
(254 |
) |
|
$ |
9,772 |
|
| Total average assets for
period ended |
|
$ |
2,395,363 |
|
|
$ |
548,002 |
|
|
$ |
2,943,365 |
|
| Full-time employees
("FTEs") |
|
|
447 |
|
|
|
123 |
|
|
|
570 |
|
| |
|
At or For the Three Months Ended December 31, 2022 |
|
| Condensed income
statement: |
|
Commercial and Consumer Banking |
|
|
Home Lending |
|
|
Total |
|
|
Net interest income (1) |
|
$ |
26,375 |
|
|
$ |
2,927 |
|
|
$ |
29,302 |
|
| Provision for credit
losses |
|
|
(1,337 |
) |
|
|
(248 |
) |
|
|
(1,585 |
) |
| Noninterest income (2) |
|
|
2,214 |
|
|
|
1,482 |
|
|
|
3,696 |
|
| Noninterest expense (3) |
|
|
(16,845 |
) |
|
|
(5,004 |
) |
|
|
(21,849 |
) |
| Income (loss) before
(provision) benefit for income taxes |
|
|
10,407 |
|
|
|
(843 |
) |
|
|
9,564 |
|
| (Provision) benefit for income
taxes |
|
|
(2,101 |
) |
|
|
159 |
|
|
|
(1,942 |
) |
| Net income (loss) |
|
$ |
8,306 |
|
|
$ |
(684 |
) |
|
$ |
7,622 |
|
| Total average assets for
period ended |
|
$ |
2,154,427 |
|
|
$ |
457,315 |
|
|
$ |
2,611,742 |
|
| FTEs |
|
|
405 |
|
|
|
132 |
|
|
|
537 |
|
| |
|
At or For the Year Ended December 31, 2023 |
|
| |
|
Commercial |
|
|
|
|
|
|
|
| |
|
and Consumer |
|
|
|
|
|
|
|
| Condensed income
statement: |
|
Banking |
|
|
Home Lending |
|
|
Total |
|
|
Net interest income (1) |
|
$ |
111,737 |
|
|
$ |
11,566 |
|
|
$ |
123,303 |
|
| Provision for credit
losses |
|
|
(3,494 |
) |
|
|
(1,280 |
) |
|
|
(4,774 |
) |
| Noninterest income (2) |
|
|
10,368 |
|
|
|
10,122 |
|
|
|
20,490 |
|
| Noninterest expense (3) |
|
|
(73,767 |
) |
|
|
(19,980 |
) |
|
|
(93,747 |
) |
| Income before provision for
income taxes |
|
|
44,844 |
|
|
|
428 |
|
|
|
45,272 |
|
| Provision for income
taxes |
|
|
(9,132 |
) |
|
|
(87 |
) |
|
|
(9,219 |
) |
| Net income |
|
$ |
35,712 |
|
|
$ |
341 |
|
|
$ |
36,053 |
|
| Total average assets for
period ended |
|
$ |
2,315,806 |
|
|
$ |
527,442 |
|
|
$ |
2,843,248 |
|
| FTEs |
|
|
447 |
|
|
|
123 |
|
|
|
570 |
|
| |
|
At or For the Year Ended December 31, 2022 |
|
| |
|
Commercial |
|
|
|
|
|
|
|
|
|
| |
|
and Consumer |
|
|
|
|
|
|
|
|
|
| Condensed income
statement: |
|
Banking |
|
|
Home Lending |
|
|
Total |
|
|
Net interest income (1) |
|
$ |
93,358 |
|
|
$ |
10,922 |
|
|
$ |
104,280 |
|
| Provision for credit
losses |
|
|
(5,064 |
) |
|
|
(1,153 |
) |
|
|
(6,217 |
) |
| Noninterest income (2) |
|
|
10,158 |
|
|
|
7,950 |
|
|
|
18,108 |
|
| Noninterest expense (3) |
|
|
(59,723 |
) |
|
|
(19,460 |
) |
|
|
(79,183 |
) |
| Income (loss) before
(provision) benefit for income taxes |
|
|
38,729 |
|
|
|
(1,741 |
) |
|
|
36,988 |
|
| (Provision) benefit for income
taxes |
|
|
(7,684 |
) |
|
|
345 |
|
|
|
(7,339 |
) |
| Net income (loss) |
|
$ |
31,045 |
|
|
$ |
(1,396 |
) |
|
$ |
29,649 |
|
| Total average assets for
period ended |
|
$ |
2,018,263 |
|
|
$ |
417,431 |
|
|
$ |
2,435,694 |
|
| FTEs |
|
|
405 |
|
|
|
132 |
|
|
|
537 |
|
________________________
|
(1) |
|
Net interest income is the difference between interest earned on
assets and the cost of liabilities to fund those assets. Interest
earned includes actual interest earned on segment assets and, if
the segment has excess liabilities, interest credits for providing
funding to the other segment. The cost of liabilities includes
interest expense on segment liabilities and, if the segment does
not have enough liabilities to fund its assets, a funding charge
based on the cost of assigned liabilities to fund segment
assets. |
|
|
|
|
|
(2) |
|
Noninterest income includes activity from certain residential
mortgage loans that were initially originated for sale and measured
at fair value, and subsequently transferred to loans held for
investment. Gains and losses from changes in fair value for these
loans are reported in earnings as a component of noninterest
income. For the three months and year ended December 31, 2023,
the Company recorded a net increase in fair value of
$733,000 and $447,000, as compared to a net increase in fair
value of $181,000 and a net decrease in fair value of
$1.7 million for the three months and
year ended December 31, 2022 , respectively. As
of December 31, 2023 and 2022, there were $15.1 million
and $14.0 million, respectively, in residential mortgage loans
recorded at fair value as they were previously transferred from
loans held for sale to loans held for investment. |
|
|
|
|
|
(3) |
|
Noninterest expense includes allocated overhead expense from
general corporate activities. Allocation is determined based on a
combination of segment assets and FTEs. For
the three months and year ended December 31, 2023
and 2022, the Home Lending segment included allocated overhead
expenses of $1.4 million and $1.5 million,
respectively. For the year ended December 31, 2023
and 2022, the Home Lending segment included allocated overhead
expenses of $6.1 million and $6.2 million,
respectively. |
|
|
|
|
Asset Summary
Total assets increased $52.6 million, or 1.8%, to
$2.97 billion at December 31, 2023, compared to
$2.92 billion at September 30, 2023, and increased
$339.8 million, or 12.9%, from $2.63 billion at December
31, 2022. The increase in total assets at December 31,
2023 compared to September 30, 2023 was primarily due to increases
in securities available-for-sale (“AFS”) of $41.0 million,
loans receivable, net of $25.9 million and loans held for
sale (“HFS”) of $7.0 million, partially offset by decreases of
$13.9 million in interest-bearing deposits at other financial
institutions and $8.2 million in other assets.
The increase in securities AFS was attributable to purchases
of variable and shorter duration securities, as well as increases
in fair value due to improving market rates.
The increase in loans receivable, net was due to organic
loan growth. The decrease in other assets was principally due to
declines in the fair value of interest rate swaps. The
increase in total assets at December 31, 2023 compared
to December 31, 2022 was primarily due to increases in
loans receivable, net of $210.6 million, primarily due to
organic loan growth which was primarily funded through deposits
received from the purchase of seven retail branches from Columbia
State Bank completed on February 24, 2023 (“Branch
Acquisition”). The increase in total assets at December
31, 2023 compared to December 31, 2022 also included
increase in securities available-for-sale of $63.7 million,
total cash and cash equivalents of $24.3 million, certificates of
deposit (“CDs”) at other financial institutions of $19.5
million, core deposit intangible (“CDI”), net of
$14.0 million, loans HFS of $5.6 million, premises and
equipment of $5.5 million, accrued interest receivable of $2.9
million, goodwill of $1.3 million, and other assets of $1.2
million. These increases were partially offset by a
decrease in FHLB stock of $8.5 million.
|
LOAN PORTFOLIO |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Dollars in thousands) |
|
December 31, 2023 |
|
|
September 30, 2023 |
|
|
December 31, 2022 |
|
| |
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
| REAL ESTATE
LOANS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Commercial |
|
$ |
366,328 |
|
|
|
15.1 |
% |
|
$ |
364,673 |
|
|
|
15.2 |
% |
|
$ |
334,059 |
|
|
|
15.1 |
% |
| Construction and
development |
|
|
303,054 |
|
|
|
12.5 |
|
|
|
289,873 |
|
|
|
12.0 |
|
|
|
342,591 |
|
|
|
15.4 |
|
| Home equity |
|
|
69,488 |
|
|
|
2.9 |
|
|
|
67,103 |
|
|
|
2.8 |
|
|
|
55,387 |
|
|
|
2.5 |
|
| One-to-four-family (excludes
HFS) |
|
|
567,742 |
|
|
|
23.3 |
|
|
|
540,670 |
|
|
|
22.5 |
|
|
|
469,485 |
|
|
|
21.2 |
|
| Multi-family |
|
|
223,769 |
|
|
|
9.2 |
|
|
|
243,661 |
|
|
|
10.1 |
|
|
|
219,738 |
|
|
|
9.9 |
|
| Total real estate loans |
|
|
1,530,381 |
|
|
|
63.0 |
|
|
|
1,505,980 |
|
|
|
62.6 |
|
|
|
1,421,260 |
|
|
|
64.1 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| CONSUMER
LOANS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Indirect home improvement |
|
|
569,903 |
|
|
|
23.4 |
|
|
|
562,650 |
|
|
|
23.4 |
|
|
|
495,941 |
|
|
|
22.3 |
|
| Marine |
|
|
73,310 |
|
|
|
3.0 |
|
|
|
73,887 |
|
|
|
3.1 |
|
|
|
70,567 |
|
|
|
3.2 |
|
| Other consumer |
|
|
3,540 |
|
|
|
0.1 |
|
|
|
3,547 |
|
|
|
0.1 |
|
|
|
3,064 |
|
|
|
0.1 |
|
| Total consumer loans |
|
|
646,753 |
|
|
|
26.5 |
|
|
|
640,084 |
|
|
|
26.6 |
|
|
|
569,572 |
|
|
|
25.6 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| COMMERCIAL BUSINESS
LOANS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Commercial and industrial |
|
|
238,301 |
|
|
|
9.8 |
|
|
|
236,520 |
|
|
|
9.8 |
|
|
|
196,791 |
|
|
|
8.9 |
|
| Warehouse lending |
|
|
17,580 |
|
|
|
0.7 |
|
|
|
23,489 |
|
|
|
1.0 |
|
|
|
31,229 |
|
|
|
1.4 |
|
| Total commercial business
loans |
|
|
255,881 |
|
|
|
10.5 |
|
|
|
260,009 |
|
|
|
10.8 |
|
|
|
228,020 |
|
|
|
10.3 |
|
| Total loans receivable,
gross |
|
|
2,433,015 |
|
|
|
100.0 |
% |
|
|
2,406,073 |
|
|
|
100.0 |
% |
|
|
2,218,852 |
|
|
|
100.0 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Allowance for credit losses on
loans |
|
|
(31,534 |
) |
|
|
|
|
|
|
(30,501 |
) |
|
|
|
|
|
|
(27,992 |
) |
|
|
|
|
| Total loans receivable,
net |
|
$ |
2,401,481 |
|
|
|
|
|
|
$ |
2,375,572 |
|
|
|
|
|
|
$ |
2,190,860 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable, net increased $25.9 million to
$2.40 billion at December 31, 2023, from $2.38 billion at
September 30, 2023, and increased $210.6 million from
$2.19 billion at December 31, 2022. The increase in total real
estate loans at December 31, 2023, compared to the prior
quarter reflects increases in one-to-four-family loans (excluding
loans HFS) of $27.1 million, construction and
development loans of $13.2 million, home equity loans of
$2.4 million, commercial real estate loans of $1.7 million and
consumer loans of $7.0 million. These increases
were partially offset by a $19.9 million decrease in
multi-family loans and a $4.1 million decrease in
commercial business loans, primarily as a result of
a $5.9 million decrease in warehouse lending.
A breakdown of commercial real estate (“CRE”) loans
at the dates indicated were as follows:
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
December 31, 2023 |
|
December 31, 2022 |
|
CRE by Type: |
|
Amount |
|
Amount |
|
Agriculture |
|
$ |
3,799 |
|
|
$ |
— |
|
|
CRE Non-owner occupied: |
|
|
|
|
|
|
|
|
|
Office |
|
|
42,739 |
|
|
|
44,757 |
|
|
Retail |
|
|
38,691 |
|
|
|
35,796 |
|
|
Hospitality/restaurant |
|
|
28,007 |
|
|
|
32,367 |
|
|
Self storage |
|
|
21,381 |
|
|
|
16,854 |
|
|
Mixed use |
|
|
19,331 |
|
|
|
16,646 |
|
|
Industrial |
|
|
16,978 |
|
|
|
21,013 |
|
|
Senior housing/assisted living |
|
|
8,505 |
|
|
|
8,685 |
|
|
Other (1) |
|
|
8,365 |
|
|
|
4,817 |
|
|
Land |
|
|
3,936 |
|
|
|
6,683 |
|
|
Education/worship |
|
|
2,620 |
|
|
|
2,717 |
|
|
Total CRE non-owner occupied |
|
|
190,553 |
|
|
|
190,335 |
|
|
CRE owner occupied: |
|
|
|
|
|
|
|
|
|
Industrial |
|
|
66,048 |
|
|
|
55,701 |
|
|
Office |
|
|
41,495 |
|
|
|
30,437 |
|
|
Retail |
|
|
22,020 |
|
|
|
20,622 |
|
|
Hospitality/restaurant |
|
|
11,065 |
|
|
|
12,259 |
|
|
Other (2) |
|
|
8,522 |
|
|
|
4,354 |
|
|
Car wash |
|
|
7,767 |
|
|
|
7,960 |
|
|
Automobile related |
|
|
7,530 |
|
|
|
8,086 |
|
|
Education/worship |
|
|
4,606 |
|
|
|
1,288 |
|
|
Mixed use |
|
|
2,923 |
|
|
|
3,017 |
|
|
Total CRE owner occupied |
|
|
171,976 |
|
|
|
143,724 |
|
|
Total |
|
$ |
366,328 |
|
|
$ |
334,059 |
|
________________________
|
(1) |
|
Primarily includes: mobile home park: $2.3 million and
$2.4 million, other: $4.4 million and $1.5 million, RV
park: $699,000 and $0.0, and automobile related: $608,000 and $0.0
for December 31, 2023 and 2022, respectively. |
|
|
|
|
|
(2) |
|
Primarily includes: other: $5.5 million
and $3.1 million, gas stations: $1.7 million
and $0.0, and non-profit: $922,000 and $948,000,
for December 31, 2023 and 2022, respectively. |
|
|
|
|
A breakdown of construction loans at the dates indicated
were as follows:
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31, 2023 |
|
|
December 31, 2022 |
|
| Construction
Types: |
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
|
Commercial construction - office |
|
$ |
4,699 |
|
|
|
1.6 |
% |
|
$ |
2,009 |
|
|
|
0.6 |
% |
|
Commercial construction - self storage |
|
|
17,445 |
|
|
|
5.8 |
|
|
|
20,000 |
|
|
|
5.8 |
|
|
Commercial construction - car wash |
|
|
7,742 |
|
|
|
2.6 |
|
|
|
3,417 |
|
|
|
1.0 |
|
|
Multi-family |
|
|
56,065 |
|
|
|
18.5 |
|
|
|
75,254 |
|
|
|
22.0 |
|
|
Custom construction - single family residential & single family
manufactured residential |
|
|
47,230 |
|
|
|
15.6 |
|
|
|
32,465 |
|
|
|
9.5 |
|
|
Custom construction - land, lot and acquisition and
development |
|
|
6,377 |
|
|
|
2.1 |
|
|
|
5,438 |
|
|
|
1.6 |
|
|
Speculative residential construction - vertical |
|
|
131,336 |
|
|
|
43.3 |
|
|
|
164,368 |
|
|
|
48.0 |
|
|
Speculative residential construction - land, lot and acquisition
and development |
|
|
32,160 |
|
|
|
10.6 |
|
|
|
39,640 |
|
|
|
11.6 |
|
|
Total |
|
$ |
303,054 |
|
|
|
100.0 |
% |
|
$ |
342,591 |
|
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Originations of one-to-four-family loans to purchase and to
refinance a home for the periods indicated were as
follows:
|
(Dollars in thousands) |
|
For the Three Months Ended |
|
|
|
|
|
|
|
|
|
December 31, 2023 |
|
|
September 30, 2023 |
|
|
|
|
|
|
|
|
|
Amount |
|
Percent |
|
|
Amount |
|
Percent |
|
|
|
$ Change |
|
|
% Change |
|
|
Purchase |
|
$ |
110,458 |
|
90.7 |
% |
|
$ |
139,345 |
|
92.1 |
% |
|
$ |
(28,887 |
) |
|
(20.7 |
)% |
|
Refinance |
|
|
11,290 |
|
9.3 |
|
|
|
12,001 |
|
7.9 |
|
|
|
(711 |
) |
|
(5.9 |
) |
|
Total |
|
$ |
121,748 |
|
100.0 |
% |
|
$ |
151,346 |
|
100.0 |
% |
|
$ |
(29,598 |
) |
|
(19.6 |
)% |
| (Dollars in thousands) |
|
For the Three Months Ended December 31, |
|
|
|
|
|
|
|
|
|
| |
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
| |
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
|
$ Change |
|
|
% Change |
|
|
Purchase |
|
$ |
110,458 |
|
|
|
90.7 |
% |
|
$ |
115,102 |
|
|
|
87.8 |
% |
|
$ |
(4,644 |
) |
|
|
(4.0 |
)% |
| Refinance |
|
|
11,290 |
|
|
|
9.3 |
|
|
|
16,045 |
|
|
|
12.2 |
|
|
|
(4,755 |
) |
|
|
(29.6 |
) |
|
Total |
|
$ |
121,748 |
|
|
|
100.0 |
% |
|
$ |
131,147 |
|
|
|
100.0 |
% |
|
$ |
(9,399 |
) |
|
|
(7.2 |
)% |
| (Dollars in thousands) |
|
For the Year Ended December 31, |
|
|
|
|
|
|
|
|
|
| |
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
| |
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
|
$ Change |
|
|
% Change |
|
|
Purchase |
|
$ |
497,669 |
|
|
|
91.6 |
% |
|
$ |
664,361 |
|
|
|
80.2 |
% |
|
$ |
(166,692 |
) |
|
|
(25.1 |
)% |
| Refinance |
|
|
45,925 |
|
|
|
8.4 |
|
|
|
164,380 |
|
|
|
19.8 |
|
|
|
(118,455 |
) |
|
|
(72.1 |
) |
|
Total |
|
$ |
543,594 |
|
|
|
100.0 |
% |
|
$ |
828,741 |
|
|
|
100.0 |
% |
|
$ |
(285,147 |
) |
|
|
(34.4 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The decrease in the origination of loans to purchase and
refinance, compared to the comparable period in 2022, reflects
the impact of higher market interest rates and low available
housing inventory in our market areas.
During the quarter ended December 31, 2023, the Company sold
$87.5 million of one-to-four-family loans compared to
$117.6 million during the previous quarter and
$76.2 million during the same quarter one year ago. Gross
margins on home loan sales increased slightly to 3.09% for the
quarter ended December 31, 2023, compared to 3.08% in the previous
quarter and increased from 2.15% in the same quarter one year ago.
Gross margins are defined as the margin on loans sold (cash sales)
without the impact of deferred costs.
Liabilities and Equity Summary
Changes in deposits at the dates indicated are as follows:
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31, 2023 |
|
|
September 30, 2023 |
|
|
|
|
|
|
|
|
|
| Transactional deposits: |
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
|
$ Change |
|
|
% Change |
|
| Noninterest-bearing
checking |
|
$ |
654,048 |
|
|
|
25.9 |
% |
|
$ |
643,670 |
|
|
|
26.2 |
% |
|
$ |
10,378 |
|
|
|
1.6 |
% |
| Interest-bearing checking
(1) |
|
|
244,028 |
|
|
|
9.7 |
|
|
|
219,469 |
|
|
|
8.9 |
|
|
|
24,559 |
|
|
|
11.2 |
|
| Escrow accounts related to
mortgages serviced (2) |
|
|
16,783 |
|
|
|
0.7 |
|
|
|
26,488 |
|
|
|
1.1 |
|
|
|
(9,705 |
) |
|
|
(36.6 |
) |
| Subtotal |
|
|
914,859 |
|
|
|
36.3 |
|
|
|
889,627 |
|
|
|
36.2 |
|
|
|
25,232 |
|
|
|
2.8 |
|
| Savings |
|
|
151,630 |
|
|
|
6.0 |
|
|
|
157,901 |
|
|
|
6.4 |
|
|
|
(6,271 |
) |
|
|
(4.0 |
) |
| Money market (3) |
|
|
359,063 |
|
|
|
14.2 |
|
|
|
389,962 |
|
|
|
15.9 |
|
|
|
(30,899 |
) |
|
|
(7.9 |
) |
| Subtotal |
|
|
510,693 |
|
|
|
20.2 |
|
|
|
547,863 |
|
|
|
22.3 |
|
|
|
(37,170 |
) |
|
|
(6.8 |
) |
| Certificates of deposit less
than $100,000 (4) |
|
|
587,858 |
|
|
|
23.3 |
|
|
|
527,032 |
|
|
|
21.5 |
|
|
|
60,826 |
|
|
|
11.5 |
|
| Certificates of deposit of
$100,000 through $250,000 |
|
|
429,373 |
|
|
|
17.0 |
|
|
|
406,545 |
|
|
|
16.6 |
|
|
|
22,828 |
|
|
|
5.6 |
|
| Certificates of deposit of
$250,000 and over |
|
|
79,540 |
|
|
|
3.2 |
|
|
|
83,377 |
|
|
|
3.4 |
|
|
|
(3,837 |
) |
|
|
(4.6 |
) |
| Subtotal |
|
|
1,096,771 |
|
|
|
43.5 |
|
|
|
1,016,954 |
|
|
|
41.5 |
|
|
|
79,817 |
|
|
|
7.8 |
|
| Total |
|
$ |
2,522,323 |
|
|
|
100.0 |
% |
|
$ |
2,454,444 |
|
|
|
100.0 |
% |
|
$ |
67,879 |
|
|
|
2.8 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31, 2023 |
|
|
December 31, 2022 |
|
|
|
|
|
|
|
|
|
| Transactional deposits: |
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
|
$ Change |
|
|
% Change |
|
|
Noninterest-bearing checking |
|
$ |
654,048 |
|
|
|
25.9 |
% |
|
$ |
537,938 |
|
|
|
25.3 |
% |
|
$ |
116,110 |
|
|
|
21.6 |
% |
|
Interest-bearing checking (1) |
|
|
244,028 |
|
|
|
9.7 |
|
|
|
135,127 |
|
|
|
6.3 |
|
|
|
108,901 |
|
|
|
80.6 |
|
|
Escrow accounts related to mortgages serviced (2) |
|
|
16,783 |
|
|
|
0.7 |
|
|
|
16,236 |
|
|
|
0.8 |
|
|
|
547 |
|
|
|
3.4 |
|
|
Subtotal |
|
|
914,859 |
|
|
|
36.3 |
|
|
|
689,301 |
|
|
|
32.4 |
|
|
|
225,558 |
|
|
|
32.7 |
|
| Savings |
|
|
151,630 |
|
|
|
6.0 |
|
|
|
134,358 |
|
|
|
6.3 |
|
|
|
17,272 |
|
|
|
12.9 |
|
| Money market (3) |
|
|
359,063 |
|
|
|
14.2 |
|
|
|
574,290 |
|
|
|
27.0 |
|
|
|
(215,227 |
) |
|
|
(37.5 |
) |
|
Subtotal |
|
|
510,693 |
|
|
|
20.2 |
|
|
|
708,648 |
|
|
|
33.3 |
|
|
|
(197,955 |
) |
|
|
(27.9 |
) |
| Certificates of deposit less
than $100,000 (4) |
|
|
587,858 |
|
|
|
23.3 |
|
|
|
440,785 |
|
|
|
20.7 |
|
|
|
147,073 |
|
|
|
33.4 |
|
| Certificates of deposit of
$100,000 through $250,000 |
|
|
429,373 |
|
|
|
17.0 |
|
|
|
195,447 |
|
|
|
9.2 |
|
|
|
233,926 |
|
|
|
119.7 |
|
| Certificates of deposit of
$250,000 and over |
|
|
79,540 |
|
|
|
3.2 |
|
|
|
93,560 |
|
|
|
4.4 |
|
|
|
(14,020 |
) |
|
|
(15.0 |
) |
|
Subtotal |
|
|
1,096,771 |
|
|
|
43.5 |
|
|
|
729,792 |
|
|
|
34.3 |
|
|
|
366,979 |
|
|
|
50.3 |
|
|
Total |
|
$ |
2,522,323 |
|
|
|
100.0 |
% |
|
$ |
2,127,741 |
|
|
|
100.0 |
% |
|
$ |
394,582 |
|
|
|
18.5 |
% |
_______________________
|
(1) |
|
Includes $70.2 million, $50.1 million, and
$2.3 million of brokered deposits at December 31, 2023,
September 30, 2023 and December 31, 2022, respectively. |
|
(2) |
|
Noninterest-bearing accounts. |
|
(3) |
|
Includes $1,000, $51,000, and $59.7 million of brokered
deposits at December 31, 2023, September 30, 2023 and December
31, 2022, respectively. |
|
(4) |
|
Includes $361.3 million, $323.3 million, and
$332.0 million of brokered deposits at December 31, 2023,
September 30, 2023 and December 31, 2022, respectively. |
|
|
|
|
At December 31, 2023, CDs, which include retail and nonretail
CDs, totaled $1.10 billion, compared to $1.02 billion at
September 30, 2023, and $729.8 million at December 31, 2022,
with nonretail CDs representing 34.2%, 33.2% and 49.3% of total CDs
at such dates, respectively. At December 31, 2023, nonretail
CDs, which include brokered CDs, online CDs, and public funds CDs,
increased $37.3 million to $374.5 million, compared to
$337.2 million at September 30, 2023, primarily due to an
increase of $38.0 million in brokered CDs. Nonretail CDs
totaled $374.5 million at December 31,
2023, compared to $359.6 million at December 31,
2022.
At December 31, 2023, the Bank had uninsured deposits of
approximately $606.5 million, compared to approximately $591.6
million in September 30, 2023, and approximately
$560.0 million at December 31, 2022. The uninsured
amounts are estimated based on the methodologies and assumptions
used for the Bank's regulatory reporting requirements.
At December 31, 2023, borrowings totaled $93.7 million and
were comprised of advances from the Federal Reserve Bank's Term
Funding Program of $89.9 million and FHLB fixed-rate
advances of $3.9 million. Borrowings decreased
$28.1 million to $93.7 million at December 31, 2023,
from $121.9 million at September 30, 2023, and
decreased $92.8 million, from $186.5 million at December
31, 2022. The decrease was partially attributable to a shift in
funding mix from overnight borrowings to wholesale brokered CDs, as
well as liquidity from the Branch Acquisition utilized to pay down
borrowings and brokered deposits.
Total stockholders’ equity increased $13.8 million, to
$264.5 million at December 31, 2023, from $250.7 million
at September 30, 2023, and increased $32.8 million from
$231.7 million at December 31, 2022. The increase in
stockholders’ equity at December 31, 2023, compared
to September 30, 2023, reflects net income of
$9.8 million, partially offset by dividends paid of
$2.0 million. In addition, stockholders’ equity was
positively impacted by unrealized net gains in securities
available-for-sale of $12.7 million, net of tax,
partially offset by unrealized net losses on interest rate
swaps of $6.6 million, net of tax, reflecting changes in
market interest rates during the quarter, resulting in a
$6.1 million net decrease in accumulated other comprehensive
loss. Book value per common share was $34.36 at December 31,
2023, compared to $32.58 at September 30, 2023, and
$30.42 at December 31, 2022.
The Bank is considered well capitalized under the minimum
capital requirements established by the Federal Deposit Insurance
Corporation (“FDIC”) with a total risk-based capital ratio of
13.4%, a Tier 1 leverage capital ratio of 10.4%, and a common
equity Tier 1 (“CET1”) capital ratio of 12.1% at December 31,
2023.
The Company exceeded all regulatory capital requirements with a
total risk-based capital ratio of 13.7%, a Tier 1 leverage capital
ratio of 9.0%, and a CET1 ratio of 10.5% at December 31, 2023.
Credit Quality
The ACLL totaled to $31.5 million, or 1.30% of
gross loans receivable (excluding loans
HFS) at December 31, 2023, compared to
$30.5 million, or 1.27% of gross loans
receivable (excluding loans HFS) at September 30, 2023, and
$28.0 million, or 1.26% of gross loans
receivable (excluding loans HFS) at December 31, 2022.
The $1.0 million increase in the ACLL at December 31,
2023, compared to the prior quarter was primarily due to an
increase in total loans and the increase in nonperforming
loans. The $3.5 million increase in the ACLL at December 31,
2023, from the prior year, was primarily due to organic
loan growth, increases in nonperforming loans, and the
addition of loans acquired in the Branch Acquisition. The
allowance for credit losses on unfunded loan commitments decreased
$266,000 to $1.5 million at December 31, 2023, compared
to $1.8 million at September 30, 2023, and decreased
$1.0 million from $2.5 million at December 31, 2022. The
decrease in allowance for unfunded loan commitments was primarily
attributable to a decrease in unfunded construction loan
commitments.
Nonperforming loans increased $5.3 million to
$11.0 million at December 31, 2023, from $5.6 million at
September 30, 2023, and increased $2.3 million from
$8.7 million at December 31, 2022. The increase in
nonperforming loans at December 31, 2023, from the
prior quarter was primarily due to the addition of one
nonperforming construction and development loan (owner
occupied commercial space) of $4.7 million and an increase in
commercial business loans of $569,000. The increase in
nonperforming loans compared to the prior year was primarily
due to the one nonperforming construction and development
loan of $4.7 million mentioned above and the addition of a
commercial real estate loan of $1.1 million,
partially offset by a decrease in commercial business loans of $3.7
million primarily attributable to a $3.5 million commercial
business loan being upgraded to performing from nonperforming
status.
Loans classified as substandard or worse increased
$5.7 million to $24.9 million at December 31, 2023,
compared to $19.2 million at September 30, 2023, and increased
$4.7 million from $20.2 million at December 31, 2022. The
increase in substandard loans at December 31, 2023, compared
to the prior quarter was primarily attributable to increases
of $4.7 million in construction and development loans and
$327,000 in commercial real estate loans, and compared to the
prior year was primarily due to increases of $4.7 million
in construction and development loans and $787,000 in
indirect home improvement loans, partially offset by a decrease of
$1.5 million in commercial real estate loans. There was
no other real estate owned (“OREO”) property at December
31, 2023, and one OREO property (a closed branch at Centralia,
Washington) in the amount of $570,000 at both September 30, 2023,
and at December 31, 2022.
Operating Results
Net interest income increased $1.2 million to
$30.5 million for the three months ended December 31, 2023,
from $29.3 million for the three months ended December 31,
2022, primarily as a result of an increase in interest income
on loans receivable, including fees. Total interest income for the
three months ended December 31, 2023, increased
$8.6 million compared to the same period last year, primarily
due to an increase of $7.1 million in interest income on loans
receivable, including fees, impacted primarily as a result new
loans being originated at higher rates and variable rate loans
repricing higher following increases in market interest rates.
Total interest expense increased $7.5 million to $14.0 million for
the three months ended December 31, 2023, compared to the
same period last year, primarily as a result of higher market
interest rates, higher utilization of borrowings and a shift in
deposit mix from transactional accounts to higher cost CDs.
For the year ended December 31, 2023, net interest income
increased $19.0 million to $123.3 million, from
$104.3 million for the year ended December 31, 2022 for the
same reasons described above for the three-month comparison, with
an increase in total interest income of $48.5 million and an
increase in interest expense of $29.5 million.
NIM decreased 38 basis points to 4.24% for the three months
ended December 31, 2023, from 4.62% for the same period in the
prior year, and increased two basis points to 4.48% for the
year ended December 31, 2023, from 4.46% for the year ended
December 31, 2022. The changes in NIM for both the three
months and year ended December 31, 2023, compared to the same
period in 2022, reflects new loan originations at higher
market interest rates, variable rate interest-earning assets
repricing higher following increases in market interest rates,
offset by the rising cost of deposits and borrowings. The benefit
from higher rates and interest earning assets were offset by rising
deposit and borrowing costs. Increases in average balances of
higher costing CDs and borrowings placed additional pressure on the
NIM, which resulted in a decrease for the three months
ended December 31, 2023, compared to the same period in
2022.
The average total cost of funds, including noninterest-bearing
checking, increased 98 basis points to 2.10% for the three
months ended December 31, 2023, from 1.12% for the three months
ended December 31, 2022. This increase was predominantly due to the
rise in cost for market rates for deposits. The average total cost
of funds increased 105 basis points to 1.72% for the year
ended December 31, 2023, from 0.67% for the year ended December 31,
2022, also reflecting increases in market interest rates over last
year. Management remains focused on matching deposit/liability
duration with the duration of loans/assets where appropriate.
For the three months and year ended December 31, 2023, the
provision for credit losses on loans was $1.7 million and
$5.8 million, respectively, compared to $1.6 million and
$6.2 million, respectively for the three months and year ended
December 31, 2022. The provision for credit losses on loans
reflects an increase in total loans receivable, an increase in
nonperforming loans, and net charge-offs in indirect home
improvement and marine loans.
During the three months ended December 31, 2023, net charge-offs
totaled $635,000, compared to $564,000 for the same period last
year, primarily due to increased net charge-offs of
$290,000 in indirect home improvement loans and $5,000 in
deposit overdrafts, partially offset by decreases of
$214,000 in marine loans and $10,000 in other loans. Net
charge-offs totaled $2.2 million during the year ended
December 31, 2023, compared to $1.4 million during the year
ended December 31, 2022. This increase was primarily due to
net charge-off increases of $1.3 million in indirect home
improvement loans, partially offset by a net decrease of
$395,000 in deposit overdraft charge-offs. Management
attributes the increase in net charge-offs over the year primarily
to higher balances of indirect consumer loans and volatile economic
conditions.
Noninterest income increased $1.8 million, to
$5.5 million, for the three months ended December 31, 2023,
from $3.7 million for the three months ended December 31,
2022. The increase reflects an $821,000 increase in gain on
sale of loans, a $540,000 increase in other noninterest income
and a $382,000 increase in service charges and fee income.
Noninterest income increased $2.4 million to
$20.5 million for the year ended December 31, 2023, from
$18.1 million for the year ended December 31, 2022. This
increase was primarily the result of a $2.6 million increase
in service charges and fee income and a $931,000 increase in other
noninterest income, partially offset by a decrease of
$1.2 million in gain on sale of loans. The increase in service
charges and fee income was primarily due to a reduction in
servicing rights amortization as a result of fewer
prepayments, and an increase in deposit fee income
attributable to deposits acquired in the Branch Acquisition.
The increase in other noninterest income was primarily due to
increases in fair value for loans evaluated under the fair value
option.
Noninterest expense increased $584,000 to
$22.4 million for the three months ended December 31, 2023,
from $21.8 million for the three months ended December 31,
2022. The increase in noninterest expense was primarily
a result of increases of $807,000 in amortization of core
deposit intangible, $368,000 in occupancy, $240,000 in FDIC
insurance, $239,000 in operations and $220,000 in salaries and
benefits. These increases were partially offset by
decreases of $898,000 in acquisition costs and $201,000 in loan
costs, and a gain on sale of OREO of
$148,000. Noninterest expense increased $14.6 million, to
$93.7 million for the year ended December 31, 2023, from
$79.2 million for the year ended December 31, 2022. Increases
during the year ended December 31, 2023, as compared to the
same period last year included $6.0 million in salaries
and benefits, $2.8 million in amortization of core deposit
intangible, $2.3 million in operations, $1.2 million in
occupancy, and $1.2 million in FDIC insurance. The
increases in noninterest expense for both the current quarter and
2023 year end, compared to the same periods the prior year
were primarily related to the Branch Acquisition.
About FS Bancorp
FS Bancorp, Inc., a Washington corporation, is the holding
company for 1st Security Bank of Washington. The Bank provides loan
and deposit services to customers who are predominantly small- and
middle-market businesses and individuals in Washington and Oregon
through its 27 Bank branches, one headquarters office that
produces loans and accepts deposits, and loan production offices in
various suburban communities in the greater Puget Sound area, the
Kennewick-Pasco-Richland metropolitan area of Washington, also
known as the Tri-Cities, and in Vancouver, Washington. The
Bank services home mortgage customers throughout the Northwest
predominantly in Washington State including the Puget Sound,
Tri-Cities and Vancouver home lending markets.
Forward-Looking Statements
When used in this press release and in other documents filed
with or furnished to the Securities and Exchange Commission (the
“SEC”), in press releases or other public stockholder
communications, or in oral statements made with the approval of an
authorized executive officer, the words or phrases “believe,”
“will,” “will likely result,” “are expected to,” “will continue,”
“is anticipated,” “estimate,” “project,” “plans,” or similar
expressions are intended to identify “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements are not historical facts but
instead represent management's current expectations and forecasts
regarding future events, many of which are inherently uncertain and
outside of our control. Actual results may differ, possibly
materially from those currently expected or projected in these
forward-looking statements. Factors that could cause the Company’s
actual results to differ materially from those described in the
forward-looking statements, include but are not limited to, the
following: potential adverse impacts to economic conditions in the
Company’s local market areas, other markets where the Company has
lending relationships, or other aspects of the Company’s business
operations or financial markets, including, without limitation, as
a result of employment levels; labor shortages, the effects of
inflation, a potential recession or slowed economic growth; changes
in the interest rate environment, including the past increases
in the Federal Reserve benchmark rate and duration at which such
increased interest rate levels are maintained, which could
adversely affect our revenues and expenses, the values of our
assets and obligations, and the availability and cost of capital
and liquidity; the impact of continuing high inflation and
the current and future monetary policies of the Federal Reserve in
response thereto; the effects of any federal government shutdown;
increased competitive pressures, changes in the interest rate
environment, adverse changes in the securities markets, the
Company’s ability to successfully realize the anticipated benefits
of the Branch Acquisition, including customer acquisition and
retention; the Company’s ability to execute its plans to grow its
residential construction lending, mortgage banking, and warehouse
lending operations, and the geographic expansion of its indirect
home improvement lending; challenges arising from expanding into
new geographic markets, products, or services; secondary market
conditions for loans and the Company’s ability to originate loans
for sale and sell loans in the secondary market; volatility in the
mortgage industry; fluctuations in deposits; liquidity issues,
including our ability to borrow funds or raise additional capital,
if necessary; the impact of bank failures or adverse developments
at other banks and related negative press about the banking
industry in general on investor and depositor sentiment;
legislative and regulatory changes, including changes in banking,
securities and tax law, in regulatory policies and principles, or
the interpretation of regulatory capital or other
rules; disruptions, security breaches, or other adverse
events, failures or interruptions in, or attacks on, our
information technology systems or on the third-party vendors who
perform critical processing functions for us; the effects of
climate change, severe weather events, natural disasters,
pandemics, epidemics and other public health crises, acts of war or
terrorism, and other external events on our business; and
other factors described in the Company’s latest Annual Report
on Form 10-K, Quarterly Reports on Form 10-Q, and other reports
filed with or furnished to the SEC which are available on its
website at www.fsbwa.com and on the SEC's website at www.sec.gov.
Any of the forward-looking statements that the Company makes in
this press release and in the other public statements are based
upon management's beliefs and assumptions at the time they are made
and may turn out to be incorrect because of the inaccurate
assumptions the Company might make, because of the factors
illustrated above or because of other factors that cannot be
foreseen by the Company. Therefore, these factors should be
considered in evaluating the forward-looking statements, and undue
reliance should not be placed on such statements. The Company does
not undertake and specifically disclaims any obligation to revise
any forward-looking statements to reflect the occurrence of
anticipated or unanticipated events or circumstances after the date
of such statements. These risks could cause the Company’s actual
results for 2024 and beyond to differ materially from those
expressed in any forward-looking statements made by, or on behalf
of the Company and could negatively affect its operating and stock
performance.
| |
|
FS BANCORP, INC. AND
SUBSIDIARYCONSOLIDATED BALANCE
SHEETS(Dollars in thousands, except share amounts)
(Unaudited) |
| |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Linked |
|
|
Year |
|
| |
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
Quarter |
|
|
Over Year |
|
| |
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
% Change |
|
|
% Change |
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
17,083 |
|
|
$ |
18,137 |
|
|
$ |
10,525 |
|
|
|
(6 |
) |
|
|
62 |
|
|
Interest-bearing deposits at other financial institutions |
|
|
48,608 |
|
|
|
62,536 |
|
|
|
30,912 |
|
|
|
(22 |
) |
|
|
57 |
|
|
Total cash and cash equivalents |
|
|
65,691 |
|
|
|
80,673 |
|
|
|
41,437 |
|
|
|
(19 |
) |
|
|
59 |
|
|
Certificates of deposit at other financial institutions |
|
|
24,167 |
|
|
|
17,636 |
|
|
|
4,712 |
|
|
|
37 |
|
|
|
413 |
|
|
Securities available-for-sale, at fair value |
|
|
292,933 |
|
|
|
251,917 |
|
|
|
229,252 |
|
|
|
16 |
|
|
|
28 |
|
|
Securities held-to-maturity, net |
|
|
8,455 |
|
|
|
8,455 |
|
|
|
8,469 |
|
|
|
— |
|
|
|
NM |
|
|
Loans held for sale, at fair value |
|
|
25,668 |
|
|
|
18,636 |
|
|
|
20,093 |
|
|
|
38 |
|
|
|
28 |
|
|
Loans receivable, net |
|
|
2,401,481 |
|
|
|
2,375,572 |
|
|
|
2,190,860 |
|
|
|
1 |
|
|
|
10 |
|
|
Accrued interest receivable |
|
|
14,005 |
|
|
|
13,925 |
|
|
|
11,144 |
|
|
|
1 |
|
|
|
26 |
|
|
Premises and equipment, net |
|
|
30,578 |
|
|
|
30,926 |
|
|
|
25,119 |
|
|
|
(1 |
) |
|
|
22 |
|
|
Operating lease right-of-use |
|
|
6,627 |
|
|
|
7,042 |
|
|
|
6,226 |
|
|
|
(6 |
) |
|
|
6 |
|
|
Federal Home Loan Bank stock, at cost |
|
|
2,114 |
|
|
|
3,696 |
|
|
|
10,611 |
|
|
|
(43 |
) |
|
|
(80 |
) |
|
Other real estate owned |
|
|
— |
|
|
|
570 |
|
|
|
570 |
|
|
|
(100 |
) |
|
|
(100 |
) |
|
Deferred tax asset, net |
|
|
6,725 |
|
|
|
7,424 |
|
|
|
6,670 |
|
|
|
(9 |
) |
|
|
1 |
|
|
Bank owned life insurance (“BOLI”), net |
|
|
37,719 |
|
|
|
37,480 |
|
|
|
36,799 |
|
|
|
1 |
|
|
|
3 |
|
|
Servicing rights, held at the lower of cost or fair value |
|
|
9,090 |
|
|
|
17,657 |
|
|
|
18,017 |
|
|
|
(49 |
) |
|
|
(50 |
) |
|
Servicing rights held for sale, held at the lower of cost or fair
value |
|
|
8,086 |
|
|
|
— |
|
|
|
— |
|
|
|
NM |
|
|
|
NM |
|
|
Goodwill |
|
|
3,592 |
|
|
|
3,592 |
|
|
|
2,312 |
|
|
|
— |
|
|
|
55 |
|
|
Core deposit intangible, net |
|
|
17,343 |
|
|
|
18,323 |
|
|
|
3,369 |
|
|
|
(5 |
) |
|
|
415 |
|
|
Other assets |
|
|
18,395 |
|
|
|
26,548 |
|
|
|
17,240 |
|
|
|
(31 |
) |
|
|
7 |
|
| TOTAL
ASSETS |
|
$ |
2,972,669 |
|
|
$ |
2,920,072 |
|
|
$ |
2,632,900 |
|
|
|
2 |
|
|
|
13 |
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing accounts |
|
$ |
670,831 |
|
|
$ |
670,158 |
|
|
$ |
554,174 |
|
|
|
NM |
|
|
|
21 |
|
|
Interest-bearing accounts |
|
|
1,851,492 |
|
|
|
1,784,286 |
|
|
|
1,573,567 |
|
|
|
4 |
|
|
|
18 |
|
|
Total deposits |
|
|
2,522,323 |
|
|
|
2,454,444 |
|
|
|
2,127,741 |
|
|
|
3 |
|
|
|
19 |
|
|
Borrowings |
|
|
93,746 |
|
|
|
121,895 |
|
|
|
186,528 |
|
|
|
(23 |
) |
|
|
(50 |
) |
|
Subordinated notes: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal amount |
|
|
50,000 |
|
|
|
50,000 |
|
|
|
50,000 |
|
|
|
— |
|
|
|
— |
|
|
Unamortized debt issuance costs |
|
|
(473 |
) |
|
|
(489 |
) |
|
|
(539 |
) |
|
|
(3 |
) |
|
|
(12 |
) |
| Total subordinated notes less
unamortized debt issuance costs |
|
|
49,527 |
|
|
|
49,511 |
|
|
|
49,461 |
|
|
|
NM |
|
|
|
NM |
|
|
Operating lease liability |
|
|
6,848 |
|
|
|
7,269 |
|
|
|
6,474 |
|
|
|
(6 |
) |
|
|
6 |
|
|
Other liabilities |
|
|
35,737 |
|
|
|
36,288 |
|
|
|
30,999 |
|
|
|
(2 |
) |
|
|
15 |
|
|
Total liabilities |
|
|
2,708,181 |
|
|
|
2,669,407 |
|
|
|
2,401,203 |
|
|
|
1 |
|
|
|
13 |
|
| COMMITMENTS AND
CONTINGENCIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| STOCKHOLDERS’
EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock, $.01 par value; 5,000,000 shares authorized; none
issued or outstanding |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Common stock, $.01 par value; 45,000,000 shares authorized;
7,800,545 shares issued and outstanding at December 31, 2023,
7,796,095 at September 30, 2023, and 7,736,185 at December 31,
2022 |
|
|
78 |
|
|
|
78 |
|
|
|
77 |
|
|
|
— |
|
|
|
1 |
|
|
Additional paid-in capital |
|
|
57,362 |
|
|
|
57,464 |
|
|
|
55,187 |
|
|
|
NM |
|
|
|
4 |
|
|
Retained earnings |
|
|
230,354 |
|
|
|
222,532 |
|
|
|
202,065 |
|
|
|
4 |
|
|
|
14 |
|
|
Accumulated other comprehensive loss, net of tax |
|
|
(23,306 |
) |
|
|
(29,409 |
) |
|
|
(25,632 |
) |
|
|
(21 |
) |
|
|
(9 |
) |
|
Total stockholders’ equity |
|
|
264,488 |
|
|
|
250,665 |
|
|
|
231,697 |
|
|
|
6 |
|
|
|
14 |
|
| TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
$ |
2,972,669 |
|
|
$ |
2,920,072 |
|
|
$ |
2,632,900 |
|
|
|
2 |
|
|
|
13 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FS BANCORP, INC. AND
SUBSIDIARYCONSOLIDATED STATEMENTS OF
INCOME(Dollars in thousands, except per share amounts)
(Unaudited) |
| |
| |
|
Three Months Ended |
|
|
Qtr |
|
|
Year |
|
| |
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
Over Qtr |
|
|
Over Year |
|
| |
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
% Change |
|
|
% Change |
|
|
INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loans receivable, including
fees |
|
$ |
40,863 |
|
|
$ |
39,874 |
|
|
$ |
33,763 |
|
|
|
2 |
|
|
|
21 |
|
| Interest and dividends on
investment securities, cash and cash equivalents, and certificates
of deposit at other financial institutions |
|
|
3,580 |
|
|
|
3,396 |
|
|
|
2,056 |
|
|
|
5 |
|
|
|
74 |
|
|
Total interest and dividend income |
|
|
44,443 |
|
|
|
43,270 |
|
|
|
35,819 |
|
|
|
3 |
|
|
|
24 |
|
| INTEREST
EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Deposits |
|
|
12,055 |
|
|
|
10,462 |
|
|
|
3,982 |
|
|
|
15 |
|
|
|
203 |
|
| Borrowings |
|
|
1,447 |
|
|
|
1,689 |
|
|
|
2,049 |
|
|
|
(14 |
) |
|
|
(29 |
) |
| Subordinated notes |
|
|
486 |
|
|
|
485 |
|
|
|
486 |
|
|
|
— |
|
|
|
— |
|
|
Total interest expense |
|
|
13,988 |
|
|
|
12,636 |
|
|
|
6,517 |
|
|
|
11 |
|
|
|
115 |
|
| NET INTEREST
INCOME |
|
|
30,455 |
|
|
|
30,634 |
|
|
|
29,302 |
|
|
|
(1 |
) |
|
|
4 |
|
| PROVISION FOR CREDIT
LOSSES |
|
|
1,402 |
|
|
|
548 |
|
|
|
1,585 |
|
|
|
156 |
|
|
|
(12 |
) |
| NET INTEREST INCOME
AFTER PROVISION FOR CREDIT LOSSES |
|
|
29,053 |
|
|
|
30,086 |
|
|
|
27,717 |
|
|
|
(3 |
) |
|
|
5 |
|
| NONINTEREST
INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Service charges and fee
income |
|
|
2,786 |
|
|
|
2,882 |
|
|
|
2,404 |
|
|
|
(3 |
) |
|
|
16 |
|
| Gain on sale of loans |
|
|
1,413 |
|
|
|
1,875 |
|
|
|
592 |
|
|
|
(25 |
) |
|
|
139 |
|
| Earnings on cash surrender
value of BOLI |
|
|
239 |
|
|
|
233 |
|
|
|
222 |
|
|
|
3 |
|
|
|
8 |
|
| Other noninterest income |
|
|
1,018 |
|
|
|
(8 |
) |
|
|
478 |
|
|
NM |
|
|
|
113 |
|
|
Total noninterest income |
|
|
5,456 |
|
|
|
4,982 |
|
|
|
3,696 |
|
|
|
10 |
|
|
|
48 |
|
| NONINTEREST
EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Salaries and benefits |
|
|
12,742 |
|
|
|
13,503 |
|
|
|
12,522 |
|
|
|
(6 |
) |
|
|
2 |
|
| Operations |
|
|
3,326 |
|
|
|
3,409 |
|
|
|
3,087 |
|
|
|
(2 |
) |
|
|
8 |
|
| Occupancy |
|
|
1,708 |
|
|
|
1,588 |
|
|
|
1,340 |
|
|
|
8 |
|
|
|
27 |
|
| Data processing |
|
|
1,760 |
|
|
|
1,841 |
|
|
|
1,699 |
|
|
|
(4 |
) |
|
|
4 |
|
| Gain on sale of OREO |
|
|
(148 |
) |
|
|
— |
|
|
|
— |
|
|
NM |
|
|
NM |
|
| Loan costs |
|
|
497 |
|
|
|
564 |
|
|
|
698 |
|
|
|
(12 |
) |
|
|
(29 |
) |
| Professional and board
fees |
|
|
583 |
|
|
|
666 |
|
|
|
767 |
|
|
|
(12 |
) |
|
|
(24 |
) |
| Federal Deposit Insurance
Corporation (“FDIC”) insurance |
|
|
660 |
|
|
|
561 |
|
|
|
420 |
|
|
|
18 |
|
|
|
57 |
|
| Marketing and advertising |
|
|
277 |
|
|
|
452 |
|
|
|
245 |
|
|
|
(39 |
) |
|
|
13 |
|
| Acquisition costs |
|
|
— |
|
|
|
— |
|
|
|
898 |
|
|
|
— |
|
|
|
(100 |
) |
| Amortization of core deposit
intangible |
|
|
980 |
|
|
|
1,002 |
|
|
|
173 |
|
|
|
(2 |
) |
|
|
466 |
|
| Impairment of servicing
rights |
|
|
48 |
|
|
|
— |
|
|
|
— |
|
|
NM |
|
|
NM |
|
|
Total noninterest expense |
|
|
22,433 |
|
|
|
23,586 |
|
|
|
21,849 |
|
|
|
(5 |
) |
|
|
3 |
|
| INCOME BEFORE
PROVISION FOR INCOME TAXES |
|
|
12,076 |
|
|
|
11,482 |
|
|
|
9,564 |
|
|
|
5 |
|
|
|
26 |
|
| PROVISION FOR INCOME
TAXES |
|
|
2,304 |
|
|
|
2,529 |
|
|
|
1,942 |
|
|
|
(9 |
) |
|
|
19 |
|
| NET
INCOME |
|
$ |
9,772 |
|
|
$ |
8,953 |
|
|
$ |
7,622 |
|
|
|
9 |
|
|
|
28 |
|
| Basic earnings per share |
|
$ |
1.25 |
|
|
$ |
1.15 |
|
|
$ |
0.98 |
|
|
|
9 |
|
|
|
28 |
|
| Diluted earnings per
share |
|
$ |
1.23 |
|
|
$ |
1.13 |
|
|
$ |
0.97 |
|
|
|
9 |
|
|
|
27 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FS BANCORP, INC. AND
SUBSIDIARYCONSOLIDATED STATEMENTS OF
INCOME(Dollars in thousands, except per share amounts)
(Unaudited) |
| |
| |
|
Year Ended |
|
|
Year |
|
| |
|
December 31, |
|
|
December 31, |
|
|
Over Year |
|
| |
|
2023 |
|
|
2022 |
|
|
% Change |
|
|
INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
| Loans receivable, including
fees |
|
$ |
154,945 |
|
|
$ |
111,648 |
|
|
|
39 |
|
| Interest and dividends on
investment securities, cash and cash equivalents, and certificates
of deposit at other financial institutions |
|
|
12,247 |
|
|
|
7,046 |
|
|
|
74 |
|
|
Total interest and dividend income |
|
|
167,192 |
|
|
|
118,694 |
|
|
|
41 |
|
| INTEREST
EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
| Deposits |
|
|
36,751 |
|
|
|
9,420 |
|
|
|
290 |
|
| Borrowings |
|
|
5,196 |
|
|
|
3,052 |
|
|
|
70 |
|
| Subordinated note |
|
|
1,942 |
|
|
|
1,942 |
|
|
|
— |
|
|
Total interest expense |
|
|
43,889 |
|
|
|
14,414 |
|
|
|
204 |
|
| NET INTEREST
INCOME |
|
|
123,303 |
|
|
|
104,280 |
|
|
|
18 |
|
| PROVISION FOR CREDIT
LOSSES |
|
|
4,774 |
|
|
|
6,217 |
|
|
|
(23 |
) |
| NET INTEREST INCOME
AFTER PROVISION FOR CREDIT LOSSES |
|
|
118,529 |
|
|
|
98,063 |
|
|
|
21 |
|
| NONINTEREST
INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
| Service charges and fee
income |
|
|
11,138 |
|
|
|
8,525 |
|
|
|
31 |
|
| Gain on sale of loans |
|
|
6,711 |
|
|
|
7,917 |
|
|
|
(15 |
) |
| Earnings on cash surrender
value of BOLI |
|
|
920 |
|
|
|
876 |
|
|
|
5 |
|
| Other noninterest income |
|
|
1,721 |
|
|
|
790 |
|
|
|
118 |
|
|
Total noninterest income |
|
|
20,490 |
|
|
|
18,108 |
|
|
|
13 |
|
| NONINTEREST
EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
| Salaries and benefits |
|
|
53,622 |
|
|
|
47,632 |
|
|
|
13 |
|
| Operations |
|
|
13,070 |
|
|
|
10,743 |
|
|
|
22 |
|
| Occupancy |
|
|
6,378 |
|
|
|
5,165 |
|
|
|
23 |
|
| Data processing |
|
|
6,852 |
|
|
|
6,062 |
|
|
|
13 |
|
| Gain on sale of OREO |
|
|
(148 |
) |
|
|
— |
|
|
|
NM |
|
| Loan costs |
|
|
2,574 |
|
|
|
2,718 |
|
|
|
(5 |
) |
| Professional and board
fees |
|
|
2,584 |
|
|
|
3,154 |
|
|
|
(18 |
) |
| FDIC insurance |
|
|
2,392 |
|
|
|
1,224 |
|
|
|
95 |
|
| Marketing and advertising |
|
|
1,349 |
|
|
|
897 |
|
|
|
50 |
|
| Acquisition costs |
|
|
1,562 |
|
|
|
898 |
|
|
|
74 |
|
| Amortization of core deposit
intangible |
|
|
3,464 |
|
|
|
691 |
|
|
|
401 |
|
| Impairment (recovery) of
servicing rights |
|
|
48 |
|
|
|
(1 |
) |
|
|
(4,900 |
) |
|
Total noninterest expense |
|
|
93,747 |
|
|
|
79,183 |
|
|
|
18 |
|
| INCOME BEFORE
PROVISION FOR INCOME TAXES |
|
|
45,272 |
|
|
|
36,988 |
|
|
|
22 |
|
| PROVISION FOR INCOME
TAXES |
|
|
9,219 |
|
|
|
7,339 |
|
|
|
26 |
|
| NET
INCOME |
|
$ |
36,053 |
|
|
$ |
29,649 |
|
|
|
22 |
|
| Basic earnings per share |
|
$ |
4.63 |
|
|
$ |
3.75 |
|
|
|
23 |
|
| Diluted earnings per
share |
|
$ |
4.56 |
|
|
$ |
3.70 |
|
|
|
23 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
KEY FINANCIAL RATIOS AND DATA (Unaudited)
| |
|
For the Three Months Ended |
|
| |
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
| PERFORMANCE
RATIOS: |
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
Return on assets (ratio of net income to average total assets)
(1) |
|
|
1.32 |
% |
|
|
1.22 |
% |
|
|
1.17 |
% |
|
Return on equity (ratio of net income to average equity) (1) |
|
|
15.01 |
|
|
|
13.81 |
|
|
|
13.32 |
|
|
Yield on average interest-earning assets (1) |
|
|
6.19 |
|
|
|
6.13 |
|
|
|
5.65 |
|
|
Average total cost of funds (1) |
|
|
2.10 |
|
|
|
1.92 |
|
|
|
1.12 |
|
|
Interest rate spread information – average during period |
|
|
4.09 |
|
|
|
4.21 |
|
|
|
4.53 |
|
|
Net interest margin (1) |
|
|
4.24 |
|
|
|
4.34 |
|
|
|
4.62 |
|
|
Operating expense to average total assets (1) |
|
|
3.02 |
|
|
|
3.23 |
|
|
|
3.36 |
|
|
Average interest-earning assets to average interest-bearing
liabilities (1) |
|
|
143.45 |
|
|
|
145.14 |
|
|
|
142.94 |
|
|
Efficiency ratio (2) |
|
|
62.47 |
|
|
|
66.22 |
|
|
|
66.21 |
|
|
Common equity ratio (ratio of stockholders' equity to total
assets) |
|
|
8.90 |
|
|
|
8.58 |
|
|
|
8.80 |
|
|
Tangible common equity ratio (3) |
|
|
8.25 |
|
|
|
7.89 |
|
|
|
8.60 |
|
| |
|
For the Year Ended |
|
| |
|
December 31, |
|
|
December 31, |
|
| PERFORMANCE
RATIOS: |
|
2023 |
|
|
2022 |
|
|
Return on assets (ratio of net income to average total assets) |
|
|
1.27 |
% |
|
|
1.18 |
% |
|
Return on equity (ratio of net income to average equity) |
|
|
14.36 |
|
|
|
12.71 |
|
|
Yield on average interest-earning assets |
|
|
6.07 |
|
|
|
5.07 |
|
|
Average total cost of funds |
|
|
1.72 |
|
|
|
0.67 |
|
|
Interest rate spread information – average during period |
|
|
4.36 |
|
|
|
4.40 |
|
|
Net interest margin |
|
|
4.48 |
|
|
|
4.46 |
|
|
Operating expense to average total assets |
|
|
3.30 |
|
|
|
3.15 |
|
|
Average interest-earning assets to average interest-bearing
liabilities |
|
|
145.50 |
|
|
|
149.09 |
|
|
Efficiency ratio (2) |
|
|
65.20 |
|
|
|
64.70 |
|
| |
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
| ASSET QUALITY RATIOS
AND DATA: |
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
Nonperforming assets to total assets at end of period (4) |
|
|
0.37 |
% |
|
|
0.21 |
% |
|
|
0.35 |
% |
|
Nonperforming loans to total gross loans (excluding loans held for
sale) (5) |
|
|
0.45 |
|
|
|
0.23 |
|
|
|
0.39 |
|
|
Allowance for credit losses - loans to nonperforming loans (5) |
|
|
288.11 |
|
|
|
493.46 |
|
|
|
303.50 |
|
|
Allowance for credit losses - loans to gross loans receivable
(excluding loans held for sale) |
|
|
1.30 |
|
|
|
1.27 |
|
|
|
1.26 |
|
| |
|
At or For the Three Months Ended |
|
| |
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
| PER COMMON SHARE
DATA: |
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
Basic earnings per share |
|
$ |
1.25 |
|
|
$ |
1.15 |
|
|
$ |
0.98 |
|
|
Diluted earnings per share |
|
$ |
1.23 |
|
|
$ |
1.13 |
|
|
$ |
0.97 |
|
|
Weighted average basic shares outstanding |
|
|
7,696,429 |
|
|
|
7,667,981 |
|
|
|
7,597,260 |
|
|
Weighted average diluted shares outstanding |
|
|
7,795,383 |
|
|
|
7,780,430 |
|
|
|
7,712,498 |
|
|
Common shares outstanding at end of period |
|
|
7,698,401 |
(6) |
|
|
7,693,951 |
(7) |
|
|
7,617,655 |
(8) |
|
Book value per share using common shares outstanding |
|
$ |
34.36 |
|
|
$ |
32.58 |
|
|
$ |
30.42 |
|
|
Tangible book value per share using common shares outstanding
(9) |
|
$ |
31.64 |
|
|
$ |
29.73 |
|
|
$ |
29.67 |
|
____________________________
|
(1) |
|
Annualized. |
|
(2) |
|
Total noninterest expense as a percentage of net interest income
and total noninterest income. |
|
(3) |
|
Tangible common equity ratio excludes intangible assets. This
ratio represents a non-GAAP financial measure.
See “Non-GAAP Financial Measures” below. |
|
(4) |
|
Nonperforming assets consist of nonperforming loans (which include
nonaccruing loans and accruing loans more than 90 days past due),
foreclosed real estate and other repossessed assets. |
|
(5) |
|
Nonperforming loans consist of nonaccruing loans and accruing loans
90 days or more past due. |
|
(6) |
|
Common shares were calculated using shares outstanding of
7,800,545 at December 31, 2023, less 102,144 unvested
restricted stock shares. |
|
(7) |
|
Common shares were calculated using shares outstanding of
7,796,095 at September 30, 2023, less 102,144 unvested
restricted stock shares. |
|
(8) |
|
Common shares were calculated using shares outstanding of
7,736,185 at December 31, 2022, less 118,530 unvested
restricted stock shares. |
|
(9) |
|
Tangible book value per share using outstanding common shares
excludes intangible assets. This ratio represents a non-GAAP
financial measure. See “Non-GAAP Financial
Measures” below. |
| (Dollars in thousands) |
|
For the Three Months Ended December 31, |
|
|
For the Year Ended December 31, |
|
|
QTR Over QTR |
|
|
Year Over Year |
|
|
Average Balances |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
$ Change |
|
|
$ Change |
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loans receivable (1) |
|
$ |
2,448,946 |
|
|
$ |
2,194,173 |
|
|
$ |
2,384,577 |
|
|
$ |
2,014,017 |
|
|
$ |
254,773 |
|
|
$ |
370,560 |
|
| Securities available-for-sale,
at fair value |
|
|
321,735 |
|
|
|
274,255 |
|
|
|
288,152 |
|
|
|
278,099 |
|
|
|
47,480 |
|
|
|
10,053 |
|
| Securities
held-to-maturity |
|
|
8,500 |
|
|
|
8,500 |
|
|
|
8,500 |
|
|
|
8,084 |
|
|
|
— |
|
|
|
416 |
|
| Interest-bearing deposits and
certificates of deposit at other financial institutions |
|
|
66,769 |
|
|
|
11,729 |
|
|
|
67,063 |
|
|
|
7,231 |
|
|
|
55,040 |
|
|
|
59,832 |
|
| FHLB stock, at cost |
|
|
3,403 |
|
|
|
26,706 |
|
|
|
4,740 |
|
|
|
32,689 |
|
|
|
(23,303 |
) |
|
|
(27,949 |
) |
|
Total interest-earning assets |
|
|
2,849,353 |
|
|
|
2,515,363 |
|
|
|
2,753,032 |
|
|
|
2,340,120 |
|
|
|
333,990 |
|
|
|
412,912 |
|
| Noninterest-earning
assets |
|
|
94,012 |
|
|
|
96,379 |
|
|
|
90,216 |
|
|
|
95,574 |
|
|
|
(2,367 |
) |
|
|
(5,358 |
) |
| Total
assets |
|
$ |
2,943,365 |
|
|
$ |
2,611,742 |
|
|
$ |
2,843,248 |
|
|
$ |
2,435,694 |
|
|
$ |
331,623 |
|
|
$ |
407,554 |
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing accounts |
|
$ |
1,817,369 |
|
|
$ |
1,495,841 |
|
|
$ |
1,732,342 |
|
|
$ |
1,417,561 |
|
|
$ |
321,528 |
|
|
$ |
314,781 |
|
| Borrowings |
|
|
119,451 |
|
|
|
214,488 |
|
|
|
110,328 |
|
|
|
102,571 |
|
|
|
(95,037 |
) |
|
|
7,757 |
|
| Subordinated notes |
|
|
49,517 |
|
|
|
49,450 |
|
|
|
49,492 |
|
|
|
49,425 |
|
|
|
67 |
|
|
|
67 |
|
|
Total interest-bearing liabilities |
|
|
1,986,337 |
|
|
|
1,759,779 |
|
|
|
1,892,162 |
|
|
|
1,569,557 |
|
|
|
226,558 |
|
|
|
322,605 |
|
| Noninterest-bearing
accounts |
|
|
659,080 |
|
|
|
555,622 |
|
|
|
662,998 |
|
|
|
579,968 |
|
|
|
103,458 |
|
|
|
83,030 |
|
| Other noninterest-bearing
liabilities |
|
|
39,651 |
|
|
|
33,775 |
|
|
|
36,992 |
|
|
|
31,955 |
|
|
|
5,876 |
|
|
|
5,037 |
|
| Total
liabilities |
|
$ |
2,685,068 |
|
|
$ |
2,349,176 |
|
|
$ |
2,592,152 |
|
|
$ |
2,181,480 |
|
|
$ |
335,892 |
|
|
$ |
410,672 |
|
____________________________(1) Includes loans HFS.
Non-GAAP Financial Measures:
In addition to financial results presented in accordance with
generally accepted accounting principles utilized in the United
States (“GAAP”), this earnings release presents non-GAAP financial
measures that include tangible book value per share and
tangible common equity ratio. Management believes that
providing the Company’s tangible book value per share and tangible
common equity ratio is consistent with the capital treatment
utilized by the investment community, which excludes intangible
assets from the calculation of risk-based capital ratios and
facilitates comparison of the quality and composition of the
Company's capital over time and in comparison to its
competitors. Where applicable, the Company has also presented
comparable GAAP information.
These non-GAAP financial measures have inherent limitations,
are not required to be uniformly applied, and are not
audited. They should not be considered in isolation or as a
substitute for total stockholders' equity or operating results
determined in accordance with GAAP. These non-GAAP measures
may not be comparable to similarly titled measures reported by
other companies.
Reconciliation of the GAAP book value per share and common
equity ratio and the non-GAAP tangible book value per share and
tangible common equity ratio is presented below.
| (Dollars in thousands, except
share and per share amounts) |
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
| Tangible Book Value
Per Share: |
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
Stockholders' equity (GAAP) |
|
$ |
264,488 |
|
|
$ |
250,665 |
|
|
$ |
231,697 |
|
| Less: goodwill and core
deposit intangible, net |
|
|
(20,935 |
) |
|
|
(21,915 |
) |
|
|
(5,681 |
) |
| Tangible common stockholders'
equity (non-GAAP) |
|
$ |
243,553 |
|
|
$ |
228,750 |
|
|
$ |
226,016 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Common shares outstanding at
end of period |
|
|
7,698,401 |
|
|
|
7,693,951 |
|
|
|
7,617,655 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Book value per share
(GAAP) |
|
$ |
34.36 |
|
|
$ |
32.58 |
|
|
$ |
30.42 |
|
| Tangible book value per share
(non-GAAP) |
|
$ |
31.64 |
|
|
$ |
29.73 |
|
|
$ |
29.67 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Tangible Common Equity
Ratio: |
|
|
|
|
|
|
|
|
|
|
|
|
| Total assets (GAAP) |
|
$ |
2,972,669 |
|
|
$ |
2,920,072 |
|
|
$ |
2,632,898 |
|
| Less: goodwill and core
deposit intangible assets |
|
|
(20,935 |
) |
|
|
(21,915 |
) |
|
|
(5,681 |
) |
| Tangible assets
(non-GAAP) |
|
$ |
2,951,734 |
|
|
$ |
2,898,157 |
|
|
$ |
2,627,217 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Common equity ratio
(GAAP) |
|
|
8.90 |
% |
|
|
8.58 |
% |
|
|
8.80 |
|
| Tangible common equity ratio
(non-GAAP) |
|
|
8.25 |
|
|
|
7.89 |
|
|
|
8.60 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Contacts: Joseph C. Adams,Chief Executive
OfficerMatthew D. Mullet,Chief Financial Officer(425)
771-5299www.FSBWA.com
FS Bancorp (NASDAQ:FSBW)
Graphique Historique de l'Action
De Déc 2024 à Jan 2025
FS Bancorp (NASDAQ:FSBW)
Graphique Historique de l'Action
De Jan 2024 à Jan 2025
